News

Corporate Update

Lenzing Expands VEOCEL Lyocell Production In Thailand, Boosts Asia Nonwovens Supply Chain

• By  Textile Excellence
• March 27, 2026

Lenzing AG has expanded its VEOCEL lyocell production at Prachinburi, Thailand, marking the first regional manufacturing of nonwoven grade lyocell fibres in Asia. The facility, commissioned in 2022 with a 100000-tonne annual capacity, now directly supplies biodegradable wood-based fibres to the fast-growing hygiene and wipes segment.

Asia Pacific accounts for over 40% of global nonwovens demand, driven by rising consumption of personal care products. Localised production significantly reduces lead time and logistics emissions, strengthening supply chain resilience. Lyocell fibres produced through a closed loop process recover up to 99.8% solvent, positioning them among the most resource efficient fibres globally.

Krishna Manda, Global Head of Sustainability for Lenzing Group stated “Our site in Thailand was built with future growth and our ambitious climate goals in mind”. He also added “expanding the facility’s capabilities for VEOCEL™ fibres is a testament to our ongoing investments in sustainable innovation. Once fully commercialized, this capability will play a vital role in transitioning the regional nonwovens industry from fossil-based synthetics to biodegradable, cellulosic alternatives. We look forward to strengthening collaboration as we begin this new chapter together.”

VEOCEL supports the transition from fossil-based synthetics to cellulosic alternatives. The plant targets 95% biomass energy usage by 2027 and carbon neutrality by 2030, aligning with global climate benchmarks.

Krishna Manda, Global Head of Sustainability for Lenzing Group stated “Our site in Thailand was built with future growth and our ambitious climate goals in mind”. He also added “expanding the facility’s capabilities for VEOCEL™ fibres is a testament to our ongoing investments in sustainable innovation. Once fully commercialized, this capability will play a vital role in transitioning the regional nonwovens industry from fossil-based synthetics to biodegradable, cellulosic alternatives. We look forward to strengthening collaboration as we begin this new chapter together.”